Cologne, Germany – Raw materials maker, Covestro had sales of EUR 14.1 bn in 2017. Earnings before interest, taxation depreciation and amortisation were EUR 3.4 bn.
This is an 19% increase in group sales and a 71% increase in EBITDA.
Sales in the polyurethanes segment were up 3.4% compared with 2016 and EBITDA was up 151% to EUR 2.1bn. This was primarily due to ‘significant improvements in margins in the MDI and TDI product groups,’ the company said.
Covestro also gained EUR 39m from sale of a spray foam systems house in the US, to Arsenal Capital Partners. There was also an insurance pay out of EUR 35m. Provisions made to cover the cost of closing Tarragona of EUR 72m were added back into the mix. This happened when the decision was taken not to close the plant.
Sales in the Coatings Adhesives, Specialties segment were down 0.3% in ‘a challenging competitive environment,’ the company added. However, EBITDA rose 21% to EUR 853m.
‘We have achieved an impressive result in 2017 and significantly exceeded our overall targets,’ said CEO Patrick Thomas. ‘Compared with our first year as an independent company, we have once again clearly improved and demonstrated that our success is sustainable.’
The company pledged to increase investment above depreciation. It said it could make acquisitions to strengthen the portfolio and add value.
Looking ahead to 2018, the company expects volume growth in the low- to mid-single digit area, with EBITDA at about the same level as in 2017.